Climate change

Our 2023 Climate Report, detailed our intention to require a customer transition plan to be in place from 1 October 2025 for customers in certain sectors and for certain types of finance.

In 2024, we developed a Customer Transition Plan Assessment Framework to support the review of Customer Transition Plans and engagement with customers on their actions and progress. Our application of the Assessment Framework will be in addition to existing ESG risk assessment processes which include consideration of climate-related risks, as well as decisions NAB may make on a case-by-case basis to support progress in achieving NAB's decarbonisation targets.

Read more about NAB’s ESG risk management. Further detail is also available in our 2024 Climate Report (PDF, 6MB).

We continue to build on our climate risk capabilities and processes.

We regularly review our environment, social and governance (ESG)-related credit policy and appetite settings, including those related to our exposure to emissions-intensive, climate sensitive and low-emissions sectors. These reviews consider a range of factors including:

• Various climate change scenarios for both transition and physical risk.
• Customer strategies and plans and their alignment to the Paris Agreement temperature goals.
• Industry trends.
• Trends in our exposures to these sectors.

This review process has led to implementation of ESG-related credit policy and risk settings, including for coal, oil and gas. These risk settings are complementary to our interim sectoral decarbonisation targets, which have been set to guide our lending across key sectors in our portfolio to align our lending portfolio to net zero emissions by 2050.

Further details about interim sector decarbonisation targets is provided in the 'Metrics and targets' section of the 2024 Climate Report (PDF, 6MB).

In 2023, we launched the NAB Climate Learning Series, a partnership with Melbourne Business School’s Centre for Sustainability and Business that aims to equip bankers with climate knowledge and confidence to support our customers to decarbonise and transition. The series comprised of four climate learning programs providing colleagues with subject matter expertise and insights.

Since the launch of the Climate Learning Series, almost 8,000 colleagues across NAB have completed the first program Climate Foundations. A further three additional sector-specific programs were launched to focus on the Transport, Agriculture, and Real Estate (commercial and residential) sectors, which contribute significantly to national carbon emissions and represent significant customer exposure. Across the three additional sector-specific programs, there have been over 10,000 completions by colleagues to date.

In 2024, a refreshed climate risk module was rolled out as part of NAB's annual risk awareness training for colleagues. This included a case study to help colleagues better understand and recognise climate risk (both transition and physical risk) in a customer context. The module was mandatory for certain risk and customer-facing colleagues and other colleagues were able to choose to complete the training. Since its launch, close to 16,000 colleagues have completed it across NAB.

We’ve publicly reported on our GHG emissions since 2003. We are aligning our GHG reporting with internationally recognised climate change reporting frameworks, such as the Climate Disclosure Standards Board’s Climate Change Reporting Framework and the recommendations of the TCFD. We continue to incorporate disclosure of relevant climate change related information in our annual reporting suite and have included carbon-related disclosures in our Half and Full Year Investor Presentations since May 2015.

We’ve put a price on carbon and aligned to the UN Global Compact’s business leadership criteria on carbon pricing.

We first established an internal carbon price in 2010, as part of action to achieve and maintain carbon neutrality. NAB will continue to disclose, in our annual CDP climate change survey response and other relevant corporate publications, how we use our internal carbon price.